Adjustments and Refunds An employer that overpays the tax due may apply for an adjustment within four years from the date the tax was paid. To obtain an adjustment the employer should complete an adjustment transaction using the Unemployment Insurance Employer Self-Service System. Upon approval of the submission, the employer will receive a credit that can be applied to future taxes. When specifically requested, a refund check will be issued for the full amount of the credit. An employer who fails to include all wages in a previous report should complete an adjustment transaction via the Minnesota Unemployment Insurance Employer Self-Service System. Upon review and approval of the completed submission, the necessary adjustments will be made. Adjustments for a prior quarter should not be made on a subsequent quarter’s Wage Detail Report. All adjustments should be made to the quarter and year to which they relate. Overpayments or underpayments may also result from an unemployment insurance audit of an employer’s payroll records. In such cases, all adjustments will automatically be made, and the employer will be notified of any overpayment or underpayment. Audits Unemployment Insurance Auditors perform regular examinations of employer payroll records. An audit to verify wage items and employment is generally confined to a single year, but may be expanded if errors or exclusions are found. All of the employer’s records, including subsidiary records, must be made available to the auditor. Auditors may also inspect records for the purpose of establishing an employer’s liability under the law, to obtain information regarding an application for unemployment benefits and in connection with unemployment insurance fraud investigations. The Minnesota Unemployment Insurance Law provides that the records of any employing unit must be open to inspection, audit and verification at any reasonable time, and as often as may be deemed necessary. Records True and accurate employment records must be kept by all Minnesota employers, whether or not they are covered under the Minnesota Unemployment Insurance Law. Since an employer’s reporting requirements cannot be properly determined without such records, the records must be open to inspection as requested by the Audits & Special Accounts Section of the Minnesota Unemployment Insurance Program. The law provides penalties and administrative fees to ensure compliance. Records should contain the following information for each employee: • full name;
• complete home address; • Social Security number;
• the beginning and ending dates of the pay period and the date of payment; • the days and number of hours in which the individual performed services; • the location where the services were performed;
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